Correlation Between Chevron Corp and Citigroup
Can any of the company-specific risk be diversified away by investing in both Chevron Corp and Citigroup at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Chevron Corp and Citigroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chevron Corp and Citigroup, you can compare the effects of market volatilities on Chevron Corp and Citigroup and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Chevron Corp with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and Citigroup.
Diversification Opportunities for Chevron Corp and Citigroup
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chevron and Citigroup is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and Chevron Corp is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Chevron Corp are associated (or correlated) with Citigroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citigroup has no effect on the direction of Chevron Corp i.e., Chevron Corp and Citigroup go up and down completely randomly.
Pair Corralation between Chevron Corp and Citigroup
Considering the 90-day investment horizon Chevron Corp is expected to under-perform the Citigroup. But the stock apears to be less risky and, when comparing its historical volatility, Chevron Corp is 1.41 times less risky than Citigroup. The stock trades about -0.01 of its potential returns per unit of risk. The Citigroup is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 6,263 in Citigroup on November 11, 2024 and sell it today you would earn a total of 1,909 from holding Citigroup or generate 30.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chevron Corp vs. Citigroup
Performance |
| Timeline |
| Chevron Corp |
| Citigroup |
Chevron Corp and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chevron Corp and Citigroup
The main advantage of trading using opposite Chevron Corp and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp position performs unexpectedly, Citigroup can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Citigroup will offset losses from the drop in Citigroup's long position.| Chevron Corp vs. Aquagold International | Chevron Corp vs. Thrivent High Yield | Chevron Corp vs. Morningstar Unconstrained Allocation | Chevron Corp vs. Via Renewables |
| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Commodity Directory Find actively traded commodities issued by global exchanges |